June 15, 2009 - Financial releases
Montréal, June 15, 2009 – Gaz Métro inc. (“GMi”) announced today the offering of $100 million of 4.93% Series L First Mortgage Bonds (the “Series L Bonds”) guaranteed by Gaz Métro Limited Partnership (“Gaz Métro”).
The Series L Bonds, bearing interest at the rate of 4.93% per annum, will be dated June 18, 2009 and will mature on June 18, 2019. Standard & Poor’s Rating Services and DBRS Limited have each assigned an A rating to the Series L Bonds. A prospectus supplement and a pricing supplement relating to this issue have been filed today with the securities regulatory authorities in each of the provinces and territories of Canada and will be available on the SEDAR website at www.sedar.com under Gaz Métro inc.’s profile.
This offering of Series L Bonds is made to address the upcoming maturity of all outstanding 6.95% Series H First Mortgage Bonds of GMi in the aggregate principal amount of $100,000,000 (the “Series H Bonds”) on November 2, 2009. Proceeds from this issue will be loaned to Gaz Métro on substantially similar terms as to interest rate and maturity as those of the Series L Bonds. These proceeds will be added to Gaz Métro’s general funds and are expected to be used to prepay Gaz Métro’s outstanding indebtedness under the bridge-loan drawn in connection with the acquisition of Green Mountain Power Corporation by Northern New England Energy Corporation and maturing on October 9, 2009, and for general corporate purposes. Upon maturity of the Series H Bonds, GMi expects to reimburse their holders through the same sources of financing that would otherwise have been used, among other purposes, for the reimbursement of the bridge-loan.
The Series L Bonds will be offered on an agency basis by a syndicate of dealers led by BMO Nesbitt Burns Inc., and including Desjardins Securities Inc., National Bank Financial Inc., Scotia Capital Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., TD Securities Inc., Laurentian Bank Securities Inc. and Casgrain & Company Limited.
This press release does not constitute an offer to sell or the solicitation of an offer to buy Series L Bonds in any jurisdiction.
The Series L Bonds have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered, sold or delivered, directly or indirectly, in the United States of America. This press release does not constitute an offer to sell or the solicitation of an offer to buy such securities in the United States.
Gaz Métro Overview
With nearly $3.6 billion in assets, Gaz Métro is Quebec’s leading natural gas distribution company. Working in this regulated industry for over 50 years, Gaz Métro has become the trusted energy provider to over 180,200 customers in Quebec and 134,500 customers in Vermont while developing the skills and expertise needed to diversify beyond natural gas. Gaz Métro’s prudent growth strategy has been met with the successful entry into electricity distribution in Vermont and in the wind power sector. Offering historically strong and stable distributions with a competitive spirit, Gaz Métro is committed to its customers, unitholders, employees and community.
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